Groww IPO: Angel One Assigns 'Neutral' Rating For Investors With A Long-Term Perspective — Details Inside

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Angel One Report

Groww's parent company Billionbrains Garage Ventures Ltd. launched its initial public offering today and will conclude on Nov. 07.

The company is raising Rs 6,632 crore, comprising a fresh issue of Rs 1,060 crore and an offer for sale of Rs 5,572 crore.

Of the total proceeds, Rs 152.5 crore will be used for cloud infrastructure, Rs 225 crore for brand and marketing, Rs 205 crore to strengthen the NBFC subsidiary’s capital base, Rs 167.5 crore for funding the margin trading business, and the balance towards inorganic growth and general corporate purposes.

The shares of Groww IPO will be listed on both the National Stock Exchange and the BSE on Nov. 12.

Company Overview

• Billionbrains Garage Ventures Ltd., operating under the brand Groww, is a direct-to-customer digital investment platform offering wealth creation opportunities across equities, derivatives, bonds, and mutual funds. Customers can also access margin trading and personal loans through its proprietary, in-house technology platform.

• Groww commands a market share of 25.8% in net new demat account additions and 18.5% in active SIPs as of June 2025, and is India’s largest and fastest-growing investment platform by active NSE users, being the only Indian investment app to surpass 100 million cumulative downloads.

• The number of active NSE users increased from about five million in FY16 to 47.89 million as of June 30, 2025, reflecting deepening retail participation. The active user base grew at a CAGR of 52.74% from FY23 to June 2025, with over 80% of new customers acquired organically through referrals and word of mouth. Groww’s user base spans 98.36% of India’s pin codes, with 45% of users below 30 years of age and 81% residing outside the top five metros.

• The platform promotes sustained engagement through financial education and a diverse product suite, with over 5.7 million multi-product users. It segments customers into Aspirational and Affluent categories and is rated 4.61/5 on Google Play, making it one of India’s highest-rated investment apps, reflecting strong user trust.

Company Outlook

Groww’s revenue from operations grew at a CAGR of 84.88% from FY23 to FY25. It has reported a strong financial performance in FY25, with revenue from operations increasing to Rs 3,901.7 crore from Rs 2,609.3 crore in FY24, marking a growth of 49.6% YoY. Adjusted Ebitda rose to Rs 2,306.4 crore from Rs 1,470.9 crore, while PAT improved sharply to Rs 1,824.4 crore compared to a loss of Rs 805.5 crore in FY24.

At the upper price band of Rs 100 per share, the company is valued at a post-issue P/E of 40.79x, the valuation appears steep compared to peers. So we assign a “Neutral” rating for investors with a long-term perspective.

Key Risks

Key risks include dependence on capital market performance and trading volumes, exposure to regulatory actions or restrictions impacting its broking and NBFC operations, and vulnerability to data security, technology failures, or system outages that could disrupt services and affect customer trust.

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